What Is Tenant Billing?
Tenant billing allows landlords and managing agents with multi-let properties to recharge commercial tenants for their energy consumption.
Tenant billing has caused headaches for landlords and managing agents due to the complexity of calculating each tenants consumption.
Tenants expect to be billed fairly and accurately for their utilities, so the best way to do this is to use tenant sub meters which collect data for each tenant.
The Benefits Of Using A Tenant Billing System
Recovery Of All Costs For Managing Agent.
With accurate data, it can be ensured that all electricity paid for is recovered from the tenants. This ensures that no money is lost from the building’s annual budget. All consumption, standing, reactive and Climate Change charges can be attributed back to each tenant, leaving an accurate service charge for the use of common lighting, air conditioning plant etc.
Auditable Bills For Tenants
Tenants are increasingly requiring audit-able billing and consumption data for two reasons. Firstly, energy is becoming a greater proportion of a business’s costs. Many have seen increases of 40% in unit charges, and as such are more conscious of how this money is being spent. Secondly, corporate social responsibility is now emphasised in medium-sized companies as well as larger organisations. This means recording, acting upon and publishing performance against targets, such as those laid out in ISO14001.
One of the most significant pieces of legislation to come into effect for buildings in 2006 is the Energy in Buildings Performance Directive (EBPD). This directive will set minimum energy requirements for new buildings and existing buildings undergoing refurbishment. Furthermore, buildings will be subject to performance certificates. It is envisaged that the building’s rating (A-F, as in the case of “white goods”) will have an effect on rental price. Certification will be more reliable for building owners who have accurate data to assist the assessor.
Security of Supply
Accurate data collection can highlight breaches in supply such as neighbors and outside groups “tapping in” to the building’s incoming supply. It can also highlight potential areas of system breakdown such earth faults.
Reducing Energy Costs
Reliable data can help to reduce costs in a variety of ways. It can highlight excessive energy use and provide data for a survey. It enables targets to be set and measured against. Accurate data can also provide statistics for use in energy campaigns. Finally, electricity contract prices can be negotiated much more keenly as an established consumption profile will be in place.